WHEN IS THE BEST TIME TO SELL A HOUSE?
Right now is an excellent time to sell a house - the market is very buoyant (updated November 2020).
Not only are gardens usually looking at their best, but due to unusual Covid-19 conditions, there is high buyer competition for the number of houses available for sale, helping push up the sale price.
Many indicators from recent Real Estate Institute of NZ research show buoyant buyer activity.
The number of residential properties sold in September 2020 across New Zealand increased by 37.1% from the same time last year – the highest number of properties sold in a month in New Zealand since March 2017 and the highest number of properties sold in a September month for 14 years.
RECORD MEDIAN HOUSE SALE PRICES
What's more, nine regions hit record median prices in September, a pattern which has been trending since the first Covid Lockdown lifted.
All this makes it a seller's market. When buyers have to compete for houses, forcing them to out bid other buyers, sellers are in a prime position.
Multiple offers from buyers is the ultimate position for the seller to be in. Learn more from these novel selling tips.
Expats returning and other factors driving market
- One reason for the buoyant buyer market is the big spike in ex-pats returning home to New Zealand as a result of Covid-19.
- Their international nest-eggs often put them in the luxury real estate bracket but not exclusively. They also buy investment properties, apartments and homes in all price ranges. Lifestyle blocks are quite popular with ex-pats.
- Even without Covid, people are still buying for the usual reasons such as getting onto the property ladder, downsizing, up-sizing, upgrading, changing jobs to new locations, births, deaths, building new, cashing up investment properties, wanting a warmer home or being closer to family, especially since Covid-19.
- Bank lending conditions are also currently favourable with low interest rates, making it an attractive time for buyers to borrow, adding to reasons why now is a good time to sell a house.
- The Reserve Bank temporarily removed the Loan to Value ratio (LVR) in May
If you are under pressure to sell quickly, a shortlist of vetted real estate agents via our express service will maximise your chance of a quick sale - get in touch - it's a genuine free service. Also learn more about getting a free property appraisal - we're here to help.
DO IT NOW BUT DO IT DILIGENTLY
If you need to sell your house to move on, just do it - but do it diligently. Your choice of real estate agent will be your first most important decision.
Here at Agent Finder NZ we have been tracking and monitoring real estate listings for a decade.
Our research shows that properties that end up listed for sale a second time around are not selling because it is the ‘wrong’ time of year.
Instead, the lack of sale stemmed from things such as being ill-prepared, choosing an unsuitable real estate agent or poor decision-making.
The most important factor in a lack of sale is basing your sale on an incorrect market estimate.
Accurate real estate appraisal paramount
A real estate appraisal sets the foundation for a property sale and if it's poorly researched in the economic climate of the day, you will be on the back foot from day one, possibly without even being aware of it.
If you've decided to sell your house - start with our free agent finder service.
We have specialised in this field for 10 years and experience tells us that people have greater confidence in agents who have been put through our vetting criteria. This also frees you up to focus on preparing your house for sale and getting your ducks in a row.
We offer a 100% free agent finding service which has been proven to get our clients the optimum sale prices, within short time frames, at any time of year. This is a safe and effective service tailored to your individual property and situation.
Find out how using a vetted agent will help you get the best outcome. Free Phone 0800 789 532
WHAT ABOUT SELLING AT OTHER TIMES OF THE YEAR?
Government, bank and lending policies
The best time to sell a house can be dictated by Government and bank policies. Changes in policy or rates can influence whether you choose to go to market now or hold off for a while.
1. NEW RENTAL PROPERTY POLICIES
- Pressure on landlords to comply can result in investors selling property portfolios. These types of properties can often attract first home buyers, depending on lending policies and Kiwi Saver rules.
- New investor-buyers may be looking for a property to develop, insulate, renovate and enjoy the long term rental income.
- There may be Government policies that affect timing of giving notice to tenants, especially during Covid-19.
2. INTEREST RATE CHANGES
- Interest rate reductions can stimulate buyer activity and this is a time when investors will add to their portfolios.
- Lower interest rates are also an incentive for new buyers to enter the market or existing home owners to up-spec their homes
3. LENDING POLICIES
- First home buyer activity is affected by loan to value ratios (LVR) and minimum deposit bank policies. A change in these can see your house fit into the first home buyer market.
- LVRs were temporarily removed by the Reserve Bank in May but may be reinstated to cool the market.
- Investors' are also guided by LVR changes
This is not an exhaustive list but well worth considering when to sell your property.
Learn more about real estate commission and fees
SEASONAL PROS AND CONS OF SELLING A PROPERTY
- Cold New Zealand winters can motivate people to up-spec to warmer, insulated homes and winter/spring is often the time when they start looking.
- Autumn and winter often have fewer houses for sale, and therefore less competition from other properties.
- Insulation and the need for a warmer, dryer home often sees buyers actively looking to buy a house in Autumn.
- February and September can often have more buyer activity, although the downside is, that with so many people listing at this time, there are more properties competing with yours.
- Summer is considered the best time to sell a holiday home, as holiday makers are out and about on the roads.
- Summer can be a good time to sell a lifestyle block, with drier ground underfoot and brighter greenery
For summer sales, take into account holiday season office hours. Law firms wind down in December and may run on skeleton staffing in January. Best to start preparing early to allow time.